"We have decided to focus more directly on our core business," the company said in a statement about its "ongoing simplification efforts."

The decision to part ways with Cold Stone cost the company $19 million in debranding in the fourth quarter.

The news comes as the Canadian coffee and doughnut chain reported higher-than-expected quarterly revenue on Thursday and announced a dividend increase and a share buyback plan.

Shares of Tim Hortons, which faced investor pressure last year to return capital, were up 3% at C$59.66. At Wednesday's close, the stock had fallen nearly 8% since the company last reported quarterly earnings in November.